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Outsourcing reform proposes to sanction tax evasion with prison

The bill to improve regulation of outsourcing (proposed by President Andrés Manuel López Obrador) proposes to sanction as qualified tax evasion, which is punishable by up to nine years in prison, companies that invoice simulated operations through the provision of services.

“It has been identified that criminal activities due to tax fraud -through the figure of subcontracting- have become a common practice in Mexico, which is causing an extraordinary decrease in the collection of the country’s resources.”

According to the initiative, published by the Presidency, it is proposed to establish in article 108 of the Federal Tax Code that the conduct consisting of using simulated schemes of specialized service providers or the execution of specialized works, or subcontracting personnel constitute qualifying of the commission of the crime of tax fraud and its equivalents.

The initiative also proposes modifying the Federal Labor Law to incorporate penalties of up to 4 million 344 thousand pesos for those individuals or companies that benefit from the subcontracting of personnel, in contravention of the provisions of that law.

Economic sanctions are also imposed on companies that do not deliver information and documentation to workers about their hiring.

The initiative indicates that the subcontracting of personnel is prohibited, consisting of a physical or legal person providing or making workers available to others for the benefit of another, through the amendment to article 13 of the Federal Labor Law.

“It will not be considered subcontracting of personnel, the provision of specialized services or the execution of specialized works, which are not part of the corporate purpose or the economic activity of the beneficiary thereof, provided that the contractor has the authorization of the STPS for such purposes “.

In addition, it is proposed to create a list of specialized service providers that will allow the regulation of individuals or legal entities that provide specialized services.